Save Some Cash On Unemployment Insurance Taxes
“They have seen that they will achieve some kind of savings,” said Lois Siler, a status manager at the ESC.
Siler said she isn’t sure exactly how many businesses will take advantage of the option to reduce unemployment insurance taxes.
Employers that have been in business for less than two years are not eligible for the program, said ESC spokesman Larry Parker.
And many other businesses would not glean any benefit from making early contributions, Siler said.
Parker explains that a company’s unemployment insurance tax rate is based on a number of factors, including its history of laying off employees. An early contribution to the company’s account is also among the factors, he said.
The businesses most likely to benefit are ones that are close to getting kicked into a higher unemployment insurance tax bracket, or ones that are close to having their tax rate lowered, ESC officials said.
“We hope as many employers as possible take advantage of this opportunity,” ESC Chairman Harry Payne said in a statement. “By getting these funds early, we help replenish the Unemployment Insurance Trust Fund even more quickly and the employers get a savings to use in building their businesses.”
Parker said that getting more money in the trust fund will help keep it sound during economic hard times and in a period of extended benefits.
Parker said that information about the early contributions and potential savings was mailed out to about 2,500 businesses that could take advantage of the program earlier this month.
Tags: benefit from, harry payne, insurance, insurance trust fund, larry parker, money, spokesman larry, tax bracket, tax rate, unemployment insurance tax
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